Velocys, CompactGTL settle in patent dispute

A win for Velocys on Monday, as it reached a settlement with a rival over a two-year intellectual property dispute.

The AIM-listed gas-to-liquids technology firm had filed a patent infringement case against competitor CompactGTL in 2013.

It alleged that certain activities at the CompactGTL pilot plant facility in Wilton were infringing two of the patents held by Velocys.

In 2014, the High Court in England upheld the validity of the Veolcys patents and agreed that the activities at Wilton were in breach of Velocys' intellectual property.

Under the terms of Monday's settlement, CompactGTL was to make a one-off payment of an undisclosed sum to Velocys in recognition of its intellectual property.

The two companies were awaiting an appeal by CompactGTL on the validity of some of the claims, and an inquiry by the High Court into damages.

Those two actions were due to be discontinued on news of the settlement.

"We are pleased that this outstanding legal position has been resolved as we continue our focus on the commercial roll-out of our technology", said Velocys acting CEO Susan Robertson in a brief statement.

At 1235 GMT on Monday, shares in Velocys were up 9.37% to 43.75p.